In a strategic move aimed at promoting sustainable agriculture and diminishing import dependency, the Ugandan government has inked a Joint Development Agreement with Industrial Promotion Services (Kenya) Limited (IPS) for the establishment of a green hydrogen-based fertilizer plant.
The plant is slated to be strategically situated at Karuma, Kiryandongo District, within the Bunyoro sub-region, capitalizing on its proximity to the 600 MW Karuma Hydropower Plant.
Representing the Government of Uganda, the Ministry of Energy and Mineral Development (MEMD) has pledged a minimum 100 MW supply from Karuma HPP to advance this innovative initiative. Energy Minister Dr. Ruth Nankabirwa Ssentamu sealed the agreement on behalf of the government.
“Uganda is embracing green technology to transform its agricultural sector and become a regional sustainability leader,” remarked Dr. Nankabirwa. “This project will not only reduce dependency on imported fertilizers and empower farmers but also catalyze Uganda’s green hydrogen economy, fostering innovation in mobility, power generation, oxygen production, and other key sectors.”
Facilitated by the Presidential Advisory Committee on Exports and Industrial Development (PACEID), the project aims to bolster domestic fertilizer production, enhance food security, and generate economic opportunities for farmers.
IPS, a subsidiary of the Aga Khan Fund for Economic Development (AKFED), will spearhead the project in collaboration with Westgass Internasjol AS, a Norwegian green energy specialist, and Maire Tecnimont S.p.A, an Italian multinational renowned for fertilizer plant engineering.
This initiative garners pivotal support from the British and Norwegian governments, staunch proponents of green initiatives. Financial backing is anticipated from British International Investment (BII) and Norfund, Norway’s development finance institution.
“IPS is dedicated to climate-positive development,” affirmed Galeb Gulam, CEO of IPS. “This project is a game-changer for Ugandan agriculture, demonstrating our commitment to low-carbon economic solutions.”
Odrek Rwabwogo, PACEID chairman, underscored the project’s alignment with Uganda’s export goals. “This initiative will harness resources and technology to make a decisive impact on our agricultural sector and national export ambitions,” he emphasized.
This collaborative venture envisages a future of resilient, sustainable agriculture with enduring benefits for Ugandan farmers and the economy, epitomizing the Ugandan government’s unwavering commitment to import substitution and bolstered food security.
“Our sustainable approach will create jobs, decrease fertilizer imports, and address national food and income security. This partnership exemplifies Uganda’s focus on ecological responsibility and economic success,” added Kinar Kent, CEO of Westgass.
Westgas, the international project development arm of Westgass Hydrogen, is a green energy company dedicated to accelerating the transition from fossil fuels in Europe and emerging markets. The company envisions carbon-neutral businesses by 2030, offering affordable and secure green hydrogen and green ammonia.
Westgass collaborates on this project with Norfund, the Norwegian Investment Fund for developing countries, which boasts a committed portfolio totaling 3.1 billion USD in Sub-Saharan Africa, South-East Asia, and Central America, focusing on Renewable Energy, Financial Inclusion, Scalable Enterprises, and Green Infrastructure.
